Contact us | +971 4 3635663
Sponsored by   Mudabala
Middle East Business Information
 
Loading Loading ...
Sat, 04 Jul 2009 | 13:04 GMT

Arabs Keen on Investing in TSE

Iran Daily
 
Share
Text Size  
 
07 October 2008
The Tehran Stock Exchange (TSE)Tehran Stock Exchange (TSE)Loading... managers have come up with the idea of launching an international stock exchange on Kish Island with foreign participation.

The managers also thought of launching a financial center with collaboration of the private sector. The project started last year, but it was entangled with red tape and unwanted bureaucracy.

According to Persian daily 'Iran', the case was for a while shelved at Tehran Municipality's archives and recently was put into effect one more time. This time, in addition to Tehran Municipality and TSETSELoading... there is the talk of one or a few new investors becoming involved in the project.

Financial Center
Managing Director of TSETSELoading... Ali Rahmani said, "Establishment of a financial center is one of the important moves that should take place in the capital market.

Currently, two Saudi Arabian investors have expressed their willingness to participate in the project."

He recalled that Arabs are very much interested in investing in financial centers, communications industry and gas sector. "Of course, we have not been passive and have plans for participating in foreign markets.

At the moment, we are examining a plan for accepting stocks of Afghan and Tajik companies in TSETSELoading...," he pointed out.

He emphasized that presence of foreign investors in the Iranian capital market for any reason flourishes the bourse market.

"All markets have a trade cycle and after a period of recession they reach the growth period.

This is what happened to the housing market and the stock market is no exception to this general rule," he said.

He went on to give word of compilation of a five-year strategy for the bourse company.

"Given the end of tenure of the incumbent Board of Directors and new elections in the company, we have decided that the new board of directors examines the new strategy so that it would have more power to implement it," he noted, without elaborating any further.

Untouched
Rahmani said that based on the new strategy the value of TSETSELoading... would reach 343 billion dollars in the near future. This is because Tehran Stock Exchange Dividend and Price Index (TedPix) has grown while the markets in the rest of Persian Gulf region have lost value.

The Tehran Stock Exchange (TSE)Tehran Stock Exchange (TSE)Loading... market benchmark has grown since the beginning of March, while most of the Persian Gulf markets have had a miserable summer due to their link to the US equity market. The financial turmoil in the US started when the housing market suffered heavy blows from stagflation, bringing chaos to the giant mortgage lenders Fannie Mae and Freddie Mac.

Problems are being revealed faster and faster by other financial institutions that have been involved in direct or indirect mortgage lending.

From the beginning of the year up until the end of August, the TedPix increased by 41 percent.

In other words, the US financial turmoil has had little impact on the performance of TSETSELoading... and the value of its shares.

The share values of TSETSELoading... have been on the rise as more Iran's state-owned companies have floated stakes on the exchange to accelerate the economy's privatization.

The Iranian government plans to float shares of a greater number of public companies on the bourse, which may allow the rising trend to continue for sometime.

The main investors in the Tehran Stock ExchangeTehran Stock ExchangeLoading... are Iranian individuals, public pension funds and investment companies of the state-owned banks.

Investment
The exchange has prepared a fruitful ground for foreign investors whose robust participation can ensure long-term prosperity.

Investors have pushed up the value of shares on the Tehran Stock ExchangeTehran Stock ExchangeLoading... as more of state-owned companies have floated stakes. As mentioned earlier, the market's main index, Tehran Dividend and Price Index, has grown by 41 percent since the start of the year, while markets in the rest of the Persian Gulf have lost value.

The MSCI PGCC index, which measures the performance of seven major Persian Gulf markets, has lost 17 percent of its value since the beginning of 2008. Emerging markets as a whole have fallen by 21 percent.

So far, Tedpix has been driven by domestic investors, including individual investors, public sector pension funds and the investment arms of state-owned banks.

For the index to prosper in the longer term, foreign investors need to make significant share purchases. The stock exchange has no restrictions on foreign ownership.


© Iran Daily 2008

 
 
 
Community Comments (0) - Comment on this article
The opinions of the authors expressed herein do not necessarily state or reflect Zawya. Read our Comment Policy.
 
 
 
Loading ...
 
close x
Report Abuse
Loading ...
 
 
Loading ...
close x
Zawya Comment Policy:
 
  1. Zawya encourages you to add a comment to this discussion. You agree that when you add content to this discussion your comments will not:
    1.1   Contain any material which is libelous or defamatory of any person, is obscene, offensive, hateful or inflammatory or causes damage to the reputation of any person or organisation.
    1.2   Promote sexually explicit material, violence, discrimination based on race, sex, religion, nationality, disability, sexual orientation or age or any illegal activity.
    1.3   Be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence.
    1.4   Be threatening, abuse or invade another's privacy, or cause annoyance, inconvenience or needless anxiety.
    1.5   Be used to impersonate any person, to misrepresent your identity or affiliation with any person, or be likely to deceive any person.
    1.6   Give the impression that they represent Zawya.
    1.7   Advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse.
  2. The content posted on www.zawya.com is created by members of the public. The views expressed are theirs and unless specifically stated are not those of Zawya. Zawya reserves the right to review all comments prior to posting and edit or delete any contribution, but Zawya is not responsible for and can not be held liable for any content posted by members of the public on www.zawya.com.
  3. Zawya is not responsible for the availability or content of any third party sites that are accessible through www.zawya.com. Any links to third party websites from www.zawya.com do not amount to any endorsement of that site by Zawya and any use of that site by you is at your own risk.
  4. By submitting your comment, you hereby give Zawya the right, but not the obligation, to post, air, edit, exhibit, telecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comments worldwide, in perpetuity.
 
 
 
Community Buzz

Stories

 

Companies

Most viewed companies by Community in the last 24 hrs
Company Name Country Industry
Consolidated Contractors Company Overseas Construction and Design
Saudi Binladin Group Saudi Arabia Construction and Design
Emirates Aluminium Company UAE Metal Production
Abu Dhabi Investment Council UAE Investment Firms and Funds
Emirates Telecommunications Corporation UAE Telecommunications Services
Al Azizia Panda United Company Saudi Arabia General Retailers
Barwa Real Estate Company Qatar Landlords and Developers
Nissan Motor Egypt Egypt Transportation Products
Ras Girtas Power Company Qatar Electric Utilities
Saudi Electricity Company Saudi Arabia Electric Utilities
 

Projects

 

Blogs

 
 
 

 
 
 
 
 

Site is optimised for viewing at 1024 x 768 with Internet Explorer v6 and Firefox v3.0 and above.
Copyright © 2009 ABQ Zawya Ltd. All rights reserved. Please read our Membership Agreement